Hong Kong
CNN Business
—
Grab, the Southeast Asian startup identified for its “super app,” had a horrible Thursday.
The ride-hailing large’s inventory plummeted as a lot as 37% in New York after reporting disappointing earnings.
It posted income of $122 million for the fourth quarter, down 44% from the earlier yr because the agency mentioned it had “preemptively invested to grow” its variety of drivers.
The firm additionally misplaced $1.1 billion in the course of the interval, which it largely attributed to the prices of going public within the United States throughout its blockbuster preliminary public providing final yr.
Grab’s inventory was down 0.9% in after-hours commerce on Thursday, at about $3.28.
The slide got here three months after the agency’s debut on the Nasdaq, the biggest ever on Wall Street by a Southeast Asian firm.
Grab (GRAB) went public in December by merging with a special-purpose acquisition firm, or SPAC. The firm raised $4.5 billion within the deal, and was valued at practically $40 billion.
In distinction, the corporate is now value about $12.3 billion primarily based on its present market capitalization.
Grab was based in 2012, and rapidly soared to grow to be Southeast Asia’s Most worthy personal firm earlier than its IPO.
It acquired Uber’s Southeast Asia enterprise in 2018, and has since expanded into quite a lot of different companies, together with meals supply, digital funds and even monetary companies.
In latest years, the agency has forged itself as a “super app,” letting customers do every thing from reserving rides to taking out insurance coverage and loans. About 24 million folks use the app every month to make a transaction, throughout 480 cities in eight international locations as of 2021, Grab mentioned in its newest earnings report.
There have been some vibrant spots on Thursday: The firm’s full-year income for 2021 surged 44% year-on-year to $675 million, due to a bounce in deliveries and monetary companies.
And regardless of the sizable loss, Grab “maintained category leadership across all our core verticals,” Chief Financial Officer Peter Oey mentioned in a press release.
“We remain laser focused on our path to profitability and will continue to improve our unit economics,” he added.